DELTA AIR LINES INC (DAL) Stock Fundamental Analysis
NYSE:DAL - New York Stock Exchange, Inc. - US2473617023 - Common Stock
Overall DAL gets a fundamental rating of 5 out of 10. We evaluated DAL against 23 industry peers in the Passenger Airlines industry. There are concerns on the financial health of DAL while its profitability can be described as average. DAL has a bad growth rate and is valued cheaply.
1. Profitability
1.1 Basic Checks
In the past year DAL was profitable.
In the past year DAL had a positive cash flow from operations.
Of the past 5 years DAL 4 years were profitable.
DAL had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
DAL has a Return On Assets of 4.59%. This is amongst the best in the industry. DAL outperforms 86.96% of its industry peers.
With an excellent Return On Equity value of 22.64%, DAL belongs to the best of the industry, outperforming 82.61% of the companies in the same industry.
DAL has a better Return On Invested Capital (9.64%) than 78.26% of its industry peers.
The Average Return On Invested Capital over the past 3 years for DAL is in line with the industry average of 9.04%.
The 3 year average ROIC (8.73%) for DAL is below the current ROIC(9.64%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 22.64% | ||
| ROIC | 9.64% |
ROA(3y)4.22%
ROA(5y)-0.83%
ROE(3y)28.06%
ROE(5y)-143.2%
ROIC(3y)8.73%
ROIC(5y)N/A
1.3 Margins
The Profit Margin of DAL (5.61%) is better than 82.61% of its industry peers.
In the last couple of years the Profit Margin of DAL has declined.
Looking at the Operating Margin, with a value of 9.73%, DAL belongs to the top of the industry, outperforming 82.61% of the companies in the same industry.
DAL's Operating Margin has declined in the last couple of years.
DAL has a Gross Margin (50.29%) which is comparable to the rest of the industry.
DAL's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.73% | ||
| PM (TTM) | 5.61% | ||
| GM | 50.29% |
OM growth 3YN/A
OM growth 5Y-7.25%
PM growth 3Y81.6%
PM growth 5Y-11.17%
GM growth 3Y9.2%
GM growth 5Y-1.79%
2. Health
2.1 Basic Checks
DAL has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for DAL has been increased compared to 1 year ago.
Compared to 5 years ago, DAL has more shares outstanding
Compared to 1 year ago, DAL has an improved debt to assets ratio.
2.2 Solvency
The Debt to FCF ratio of DAL is 5.61, which is a neutral value as it means it would take DAL, 5.61 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.61, DAL belongs to the top of the industry, outperforming 86.96% of the companies in the same industry.
DAL has a Debt/Equity ratio of 0.92. This is a neutral value indicating DAL is somewhat dependend on debt financing.
DAL has a Debt to Equity ratio of 0.92. This is in the better half of the industry: DAL outperforms 73.91% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 5.61 | ||
| Altman-Z | N/A |
ROIC/WACC1.2
WACC8.02%
2.3 Liquidity
DAL has a Current Ratio of 0.37. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
DAL's Current ratio of 0.37 is on the low side compared to the rest of the industry. DAL is outperformed by 78.26% of its industry peers.
DAL has a Quick Ratio of 0.37. This is a bad value and indicates that DAL is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.32, DAL is doing worse than 78.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.32 |
3. Growth
3.1 Past
The earnings per share for DAL have decreased by -1.28% in the last year.
Measured over the past years, DAL shows a decrease in Earnings Per Share. The EPS has been decreasing by -3.42% on average per year.
DAL shows a small growth in Revenue. In the last year, the Revenue has grown by 6.19%.
The Revenue has been growing slightly by 5.57% on average over the past years.
EPS 1Y (TTM)-1.28%
EPS 3Y129.73%
EPS 5Y-3.42%
EPS Q2Q%44.53%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%13.89%
3.2 Future
The Earnings Per Share is expected to grow by 2.72% on average over the next years.
The Revenue is expected to grow by 2.41% on average over the next years.
EPS Next Y17.93%
EPS Next 2Y14.86%
EPS Next 3Y9.71%
EPS Next 5Y2.72%
Revenue Next Year6.47%
Revenue Next 2Y5.98%
Revenue Next 3Y4.65%
Revenue Next 5Y2.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 11.09, the valuation of DAL can be described as very reasonable.
Based on the Price/Earnings ratio, DAL is valued cheaply inside the industry as 91.30% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.29, DAL is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.41, the valuation of DAL can be described as very reasonable.
Based on the Price/Forward Earnings ratio, DAL is valued a bit cheaper than 78.26% of the companies in the same industry.
DAL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.41 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, DAL is valued cheaper than 82.61% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, DAL is valued a bit cheaper than the industry average as 73.91% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.27 | ||
| EV/EBITDA | 6.53 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of DAL may justify a higher PE ratio.
PEG (NY)0.62
PEG (5Y)N/A
EPS Next 2Y14.86%
EPS Next 3Y9.71%
5. Dividend
5.1 Amount
With a yearly dividend of 0.91%, DAL is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.58, DAL pays a bit more dividend than its industry peers.
Compared to an average S&P500 Dividend Yield of 2.28, DAL's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
5.2 History
The dividend of DAL decreases each year by -17.64%.
DAL has been paying a dividend for at least 10 years, so it has a reliable track record.
DAL has decreased its dividend recently.
Dividend Growth(5Y)-17.64%
Div Incr Years1
Div Non Decr Years1
5.3 Sustainability
DAL pays out 9.26% of its income as dividend. This is a sustainable payout ratio.
DP9.26%
EPS Next 2Y14.86%
EPS Next 3Y9.71%
DELTA AIR LINES INC
NYSE:DAL (1/21/2025, 8:04:00 PM)
After market: 69.62 +1.28 (+1.87%)68.34
+2.52 (+3.83%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupTransportation
GICS IndustryPassenger Airlines
Earnings (Last)
Earnings (Next)
Inst Owners78.22%
Inst Owner Change-0.14%
Ins Owners0.3%
Ins Owner Change-7.67%
Market Cap44.10B
Analysts85.19
Price Target77.7 (13.7%)
Short Float %5.84%
Short Ratio4.63
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.91% |
Yearly Dividend0.5
Dividend Growth(5Y)-17.64%
DP9.26%
Div Incr Years1
Div Non Decr Years1
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)1.11%
Min EPS beat(2)-2.51%
Max EPS beat(2)4.73%
EPS beat(4)2
Avg EPS beat(4)5.8%
Min EPS beat(4)-2.51%
Max EPS beat(4)22.18%
EPS beat(8)5
Avg EPS beat(8)3.52%
EPS beat(12)7
Avg EPS beat(12)1.89%
EPS beat(16)10
Avg EPS beat(16)10.73%
Revenue beat(2)1
Avg Revenue beat(2)3.59%
Min Revenue beat(2)-1.52%
Max Revenue beat(2)8.71%
Revenue beat(4)1
Avg Revenue beat(4)1.15%
Min Revenue beat(4)-1.52%
Max Revenue beat(4)8.71%
Revenue beat(8)3
Avg Revenue beat(8)1.1%
Revenue beat(12)7
Avg Revenue beat(12)2.58%
Revenue beat(16)11
Avg Revenue beat(16)3.7%
PT rev (1m)2.35%
PT rev (3m)26.58%
EPS NQ rev (1m)0%
EPS NQ rev (3m)23.54%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.65%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.09 | ||
| Fwd PE | 9.41 | ||
| P/S | 0.72 | ||
| P/FCF | 15.27 | ||
| P/OCF | 5.49 | ||
| P/B | 2.89 | ||
| P/tB | N/A | ||
| EV/EBITDA | 6.53 |
EPS(TTM)6.16
EY9.01%
EPS(NY)7.26
Fwd EY10.63%
FCF(TTM)4.47
FCFY6.55%
OCF(TTM)12.44
OCFY18.2%
SpS95.53
BVpS23.66
TBVpS-0.71
PEG (NY)0.62
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.59% | ||
| ROE | 22.64% | ||
| ROCE | 12.33% | ||
| ROIC | 9.64% | ||
| ROICexc | 10.29% | ||
| ROICexgc | 15.71% | ||
| OM | 9.73% | ||
| PM (TTM) | 5.61% | ||
| GM | 50.29% | ||
| FCFM | 4.68% |
ROA(3y)4.22%
ROA(5y)-0.83%
ROE(3y)28.06%
ROE(5y)-143.2%
ROIC(3y)8.73%
ROIC(5y)N/A
ROICexc(3y)9.58%
ROICexc(5y)N/A
ROICexgc(3y)15.09%
ROICexgc(5y)N/A
ROCE(3y)11.16%
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5Y-4.38%
ROICexc growth 3YN/A
ROICexc growth 5Y-3.92%
OM growth 3YN/A
OM growth 5Y-7.25%
PM growth 3Y81.6%
PM growth 5Y-11.17%
GM growth 3Y9.2%
GM growth 5Y-1.79%
F-Score5
Asset Turnover0.82
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.92 | ||
| Debt/FCF | 5.61 | ||
| Debt/EBITDA | 1.65 | ||
| Cap/Depr | 204.5% | ||
| Cap/Sales | 8.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 94.33% | ||
| Profit Quality | 83.51% | ||
| Current Ratio | 0.37 | ||
| Quick Ratio | 0.32 | ||
| Altman-Z | N/A |
F-Score5
WACC8.02%
ROIC/WACC1.2
Cap/Depr(3y)244.67%
Cap/Depr(5y)195.73%
Cap/Sales(3y)10.03%
Cap/Sales(5y)10.41%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-1.28%
EPS 3Y129.73%
EPS 5Y-3.42%
EPS Q2Q%44.53%
EPS Next Y17.93%
EPS Next 2Y14.86%
EPS Next 3Y9.71%
EPS Next 5Y2.72%
Revenue 1Y (TTM)6.19%
Revenue growth 3Y27.27%
Revenue growth 5Y5.57%
Sales Q2Q%13.89%
Revenue Next Year6.47%
Revenue Next 2Y5.98%
Revenue Next 3Y4.65%
Revenue Next 5Y2.41%
EBIT growth 1Y-6.09%
EBIT growth 3YN/A
EBIT growth 5Y-2.08%
EBIT Next Year62.58%
EBIT Next 3Y20.92%
EBIT Next 5YN/A
FCF growth 1Y153.02%
FCF growth 3Y453.77%
FCF growth 5Y-3.72%
OCF growth 1Y24.16%
OCF growth 3Y34.97%
OCF growth 5Y-0.97%